Why Self Storage Franchising?
Your Dream on a Truck!
Seven Reasons Why Self Storage Now
Seven Reasons Why Self Storage Now?
- There Has Never Been A Better Time To Get Started.
- Extremely Profitable - 30% Plus Returns Vs. 0-10% Returns For Other Real Estate Development Like Apartments Or Hotels. Self Storage Not Only Provides Present Day Income but It Also Provides Retirement Income.
- Abundance of Financing Options With Equity Requirements As Low As 10%.
- Significant New Construction Is Required To Meet Pent Up and Surging Demand.
- Owner Life Style - Replace Your Income with A Manager Driven Self Storage Business With Automation: Franchising; Kiosks; Web Based Automation.
- No Painting, No Backed Up Toilets, No Midnight Calls And Just A Couple Of Employees.
- Self storage is a 26 Billion dollar a year business and projected to a billion dollars a year over the next five years. The smart money is going into self storage.
Self Storage & You - 4 Reasons
- You can enjoy the many rewards of owning your own business.
- You can build an incredible income and retirement nest egg at the same time.
- You can be your own boss.
- Enjoy family participation in the business.
You Can Do It!
I Was Going to Build Self Storage but...........
I have heard this statement thousands of times. I hear it everyday. I realize entrepenueralship is different than a job and most be people will not make the leap because of their fears. These fears include:
1 Running out of money.
2. Not being good enough.
4. Being overwhelmed.
With a Franchise partnership you will start with the experience and help of experts and you will concur your fears!
Sevne Reasons Why Self Storage Franchising!
- You can keep your job with a manager driven system. (Or you and or your spouse can quit your job when your ready.)
- Better locations and faster start up.
- Control your own future and security with a proven system of success.
- Save time and money with a tested business plan and systems
- Professional start-up training and on going programs.
- Enjoy the many benefits like, higher profits, avoid costly mistakes, group marketing, better locations, group discounts, professional image from day one, brand recognition, internet platforms, etc. that most business owners can not obtain on their own.
- A rare opportunity to have BOTH self storage experts and franchise experts working for you and your success! In business for yourself but not by yourself.
We know franchising works for many businesses like hotels, restaurants, coffee shops and others because we spent our money with them on a regular basis. A new franchise opens every 8 minutes every business day. Franchises generate 2.3 trillion dollars a year in the US. But you may be asking yourself will it work for self storage?
Well your not alone, many industries through time have questioned the concept of Franchising, most notably Hotel and Restaurant owners, who had the same question - will it work for my industry, but as you can see every day you drive down the road it does work.
Franchising began over 40 plus years ago with companies like Holiday Inn and McDonalds. They realized that franchising allowed owners time to build their business faster because they do not have to reinvent the wheel. Quickly it was clear that by joining a team, the economy of scale, support systems, branding, training, and increased profits (that are impossible to obtain for most individuals) could be obtained by owning a franchise. This was the birth of modern Franchising!
McDonalds now is in more than 100 countries worldwide, with over 36,000 stores and Holiday Inn is doing pretty good with hotels in over 100 countries with over 4,700 hotels. There are nearly 1 million franchises in the US. This number grows every year as more individuals seek business ownership offering benefits often not available by starting their own venture.
Did you know that 41 cents of every retail dollar is spent at a Franchise? By far Franchising is the most successful business model ever introduced to business. Franchising is the fabric of many peoples success. It has changed the lives and fortunes for many who may have never done it if otherwise.
Studies claim that franchise business enjoy a success rate up to three times greater than that of independent businesses. Whatever the true number it is certain franchising affords benefits that provide greater business advantages to owners of franchised businesses.
Franchising - The Help You Need.
1. Why should I join a self storage franchise team?
Joining the franchise gives you the great opportunity to own your own business, but not just any business, a proven business with a low investment, simple operations and where the need and demand is on the rise. Check out Storage Authority Franchising.
They provide the extras that give you the advantage, like national and regional advertising, training programs, critical business systems, sales and marketing expertise, strategy, technical support and ongoing learning for owners and their staff and much much more.
They provide facility development assistance, design support, construction guidance and start up expertise support you need.
There has never been a better time to own self storage and align brand power, expertise, systems and knowledge.
2. How much money do I need to open a Self Storage Franchise?
The cost and the initial investment varies depending on the size of the facility, location, unique land costs and improvements required etc. Typically banks and other funding partners are looking for 15% to 30% investment for qualified investors. The minimum equity investment is typically $300,000 to $400,000 toward the land and construction costs with the bank loaning the balance.
3. What is the process of becoming a Franchisee?
STEP ONE: Start your self storage Investigation.
Determine if self storage is right for you; are ready to own your own business and be your own boss? There are many resources to help you with your research from your states Self Storage Association to the trade magazines.
STEP TWO: The Application
You like what you see and want to get started: Complete the Franchise application so you can learn more about the franchise opportunity and they can learn more about you so together you can determine if it is a good fit.
STEP THREE: Discuss your plans and goals with your Franchise Development Agent.
STEP FOUR: Review the Franchise Disclosure Documents (FDD)
Review the Franchise Disclosure Documents & Qualification Package. The Franchise Disclosure Document (FDD), required by the Federal Trade commission, provides prospective franchisees with information about the Franchisor, the Franchise Systems and other agreements that you will be required to submit.
STEP FIVE: Continue Your Local Research.
Determine the area where you will want to own your self-storage. Determine if that location is viable for future success.
STEP SIX: Prepare a Business Plan & Financial Review.
- Meet with your Franchise Director
- Select general location and develop a business plan
- Present business plan
- Financial review completed based upon business plan
- If all criteria is met, receive franchise approval
STEP SEVEN: Sign Franchise Agreement.
STEP EIGHT: Find and secure your location
STEP NINE: Complete your feasibility study and other due diligence.
SEPT TEN: Design and obtain approvals for your project.
STEP ELEVEN: Build your project.
STEP TWELVE: Attend training.
And Celebrate your Grand Opening.
Part of the value of a Franchise is helping you save time and money in the development process and to help you end up with a better facility from their knowledge and experience.
4. How much is the franchisee fee?
The initial franchisee fee are typically $35,000.
5. How much are the royalty and advertising fees?
Typically the royalty fee is 6% and the advertising fee is 2.5%.
6. How much money will I make?
According to the National Self Storage Association, self storage has been one of the top performing real estate investments for the last 30 years. Franchise employees, salespeople and Development Agents are not permitted to furnish any oral or written information concerning actual or potential sales or profits. Actual results vary from facility to facility and your experience. Franchisors cannot estimate the results of any particular franchise. But self storage has been the most profitable real estate investment over the last 20 years. Last year, 2015, the DOW lost 2.7% and the Self Storage Reits gained over 40%
7. Is financing available?
There are a number of approved companies that can provide you with financing. Franchisor can often can help you contact them for more detailed information on their offerings.
8. What is a Franchise Director?
A Franchise Director (or FD) is a regional representative of a Franchise. Your FD will be your primary contact in your area and will be able to provide support throughout site selection and the application process.
9. Will I receive training?
Absolutely! That is one of the several benefits of a franchise.
A Good Franchisor will provide detailed guidance to help you find land and go through the development process!
Self Storage Investigation Time
How long have you been investigating self storage?
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2014 Marc Goodin